RBA meeting minutes due out tomorrow

The RBA’s February meeting minutes are due to be released in tomorrow’s Asian session. Should the bank’s rhetoric appear to be predominantly dovish in nature, i.e implying that the bank may begin cutting rates by their next meeting, it could potentially weigh on the Aussie. Whereas should the minutes imply that the bank may continue keeping rates at their current levels for a prolonged period of time, it could potentially supporting the Aussie. Over in Japan, Finance Chief Suzuki according to local media outlets, implied that the there will come a time when the country’s interest rates will begin to rise. The comments made by the Finance Chief could potentially provide support for the JPY, as market anticipation for the country’s exit from negative interest rate territory, appears to be increasing. In the US Equities markets, we note that according to various media sources, Apple (#AAPL) is about to be fined €500M in regards to “unfair trading conditions” imposed by Apple against its music streaming competitors such as Spotify. The potential fine could potentially weigh on the company’s stock price. In the commodities market, we note that according to media sources a Lebanese cargo ship was attacked in the Red Sea, which could provide some support to oil prices, as the situation remains volatile. BoE Chief Economist Pill implied on Friday, that services inflation remain stubbornly high. The BoE member’s comments could be perceived as a sign that the bank may maintain interest rates at their current levels for a prolonged period of time. As such, the comments made may have alleviated some downwards pressures on the pound. Morgan Stanley (#MS) according to the FT, has been accused of duping the ECB by creating a non-existent job title. The revelation could potentially weigh on the company’s stock price.

EUR/USD appears to be moving in a sideways fashion. We continue to maintain a neutral outlook for the pair and supporting our case is the narrowing of the Bollinger bands implying low market volatility. Yet we should note that the RSI indicator below our chart currently registers a figure of 60, implying some bullish tendencies. Nevertheless, our sideways motion to be maintained, we would like to see the pair remain confined between the 1.0697 (S1) support level and the 1.0795 (R1) resistance line. On the other hand, for a bearish outlook, we would like to see a clear break below the 1.0697 (S1) support level, with the next possible target for the bears being the 1.0615 (S2) support base. Lastly, for a bullish outlook, we would like to see a clear break above the 1.0795 (R1) resistance line, with the next possible target for the bulls being the 1.0890 (R2) resistance barrier.

GBP/USD appears to be moving in a sideways fashion. We maintain our neutral outlook for the pair and supporting our case is the RSI indicator below our chart which currently registers a figure near 50, implying a neutral market sentiment. For our sideways bias to be maintained, we would like to see the pair remain confined between the 1.2540 (S1) support level and the 1.2650 (R1) resistance line. On the other hand, for a bearish outlook we would like to see a clear break below the 1.2540 (S1) support level, with the next possible  target for the bears being the 1.2440 (S2) support base. Lastly, for a bullish outlook, we would like to see  a clear break above the 1.2650 (R1) resistance line with the next possible target for the bulls being the 1.2760 (R2) resistance level.

Other highlights for the day:

We note in today’s European Session the release of Sweden’s CPI rates for January, the UK’s Rightmove house prices rate for February and during the American session Canada’s producer prices rate for January. On a monetary level, we note the release of the RBA’s February meeting minutes during tomorrow’s Asian session

EUR/USD H4 Chart

Support: 1.0697 (S1), 1.0615 (S2), 1.0530 (S3)

Resistance: 1.0795 (R1), 1.0890 (R2), 1.0985 (R3)

GBP/USD H4 Chart

Support: 1.2540 (S1), 1.2440 (S2), 1.2270 (S3)

Resistance: 1.2650 (R1), 1.2760 (R2), 1.2870 (R3)

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